K-pop: BTS agency Hybe grows profits by 31%

The South Korean entertainment company behind K-pop band BTS has seen a surge in profits, despite making less money from concerts during the pandemic.

Hybe says its operating profits jumped by 30.8% in the past year.

It almost tripled its revenue from content, such as games and digital comics featuring the popular group.

The firm, which was previously named Big Hit Entertainment, also owns the music labels of singers including Ariana Grande and Justin Bieber.

Speaking to investors on Tuesday, Hybe chief executive Park Ji-won said the company planned to "carry out its game and publishing business in earnest".

He said it planned to invest in game developers and "provide a variety of entertainment in the soon-to-be-unfolded metaverse".

That came after the firm reported a surge in operating profits to 190.3bn won (£118m; $160m) last year.

Revenue from its content business rose from 132.3bn won to 370.4bn.

Its takings from merchandise also grew, and that from advertisements, artist appearances and their management more than doubled.

Hybe had gained ground with K-pop fans through the Weverse platform, that allows them to connect with artists and buy exclusive content.

It is in the process of launching non-fungible tokens or NFTs. While these have been touted as the digital answer to collectables, critics have warned about risks in the market.

The firm also plans to release another mobile game and improve Rhythm Hive, where players tap along to music by BTS and other South Korean bands. They collect and buy "gems" that could be used for virtual purchases.

However, concerts have seen a slow recovery. Hybe's earnings from performances were under a quarter of what they were in 2019.

In 2020, BTS - one of the biggest revenue generators for Hybe - called off what was supposed to be their largest international tour with almost 40 concerts, because of the pandemic. The seven-member group held online shows instead.

In November, they performed in Los Angeles, marking their first in-person concert since the pandemic began.

Five of its members have contracted Covid-19 after returning to Seoul.

The band has since scheduled three concerts in the city and a series of performances in Las Vegas.